Water supply and sanitation in Panama
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| Panama: Water and Sanitation | ||
|---|---|---|
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| Data | ||
| Water coverage (broad definition) | 90% | |
| Sanitation coverage (broad definition) | 73% | |
| Continuity of supply (%) | High | |
| Average urban water use (l/c/d) | n/a | |
| Average urban water tariff (US$/m3) | n/a | |
| Share of household metering | 51% (2006) | |
| Share of collected wastewater treated | Low | |
| Annual investment in WSS | High | |
| Share of self-financing by utilities | nil | |
| Share of tax-financing | High | |
| Share of external financing | Low | |
| Institutions | ||
| Decentralization to municipalities | Very limited (one municipality) | |
| National water and sanitation company | Yes: IDAAN | |
| Water and sanitation regulator | Yes: ANSP (multi-sectoral) | |
| Responsibility for policy setting | Ministry of Health | |
| Sector law | Yes (1997) | |
| Number of urban service providers | 2: IDAAN and Boquete | |
| Number of rural service providers | 3,300 | |
Water supply and sanitation in Panama is characterized by relatively high levels of access compared to other Latin American countries. However, challenges remain especially in rural areas.
Contents |
[edit] Access
According to the Ministry of Health, in 2006 97% had access to potable water and also 97% had access to at least basic sanitation. However, WHO's and UNICEF's Joint Monitoring Program/2006 estimates access to improved water supply in 2004 at 99% in urban areas and 79% in rural areas, while access to improved sanitation was 89% in urban areas and 54% in rural areas, as shown in the table below.
| Urban (57% of the population) | Rural (43% of the population) | Total | ||
|---|---|---|---|---|
| Water | Broad definition | 99% | 79% | 90% |
| House connections | 96% | 72% | 86% | |
| Sanitation | Broad definition | 89% | 51% | 73% |
Source: Joint Monitoring Program WHO/UNICEF(JMP/2006). Compared to the data of 1990, there is no significant change neither in water supply nor in sanitation coverage both in urban and rural areas.
[edit] Service quality
Despite a lack of statistical data about water quality and continuity of supply, potable water is perceived to be of good quality in Panama and most users receive continuous service.
[edit] Responsibility for water supply and sanitation
Resonsibilities for the sector are allocated by the Panamanian Water Law, which was approved in 1997.
[edit] Policy and Regulation
The Panamanian Health Ministry is resonsible for defining the sector's policy, whereas the Autoridad Nacional de Servicios Públicos (ANSP) or National Authority for Public Services acts as regulatory agency.
Responsibility for water resources is vested in two institutions: The Autoridad Nacional del Ambiente or National Environment Authority and the Autoridad del Canal de Panamá or Panama Canal Authority.
[edit] Service Provision
According to the Water Law, the Instituto de Acueductos y Alcantaeillados Nacional (IDAAN) is responsible for water and sanitation services in urban areas with more than 1,500 inhabitants, thus preventing decentralization to municipalities. The only exception is the municipality of Boquete, which manages ist own water supply and sanitation system.
There are approximately 3,300 water supply systems in rural areas, of which 1,800 are managed by Juntas Administrativas de Acueductos Rurales (JAARs) or Rural Water Boards. The remaining are managed by Health Committees.
[edit] History and Recent Developments
IDAAN was created in 1961 and was made responsible for investments in water supply in urban areas and a significant increase in coverage of potable water and - to a lesser extent - sanitation. The institution disposed of high financial capacities and human resources during its first decades. However, IDAAN's financial situation deteriorated significantly due the absence of any tariff increase until 1982.
To face up IDAAN's weakness, its privatization was proposed at the end of the 1990s, following the telecommunications and electricity sector. At the same time, an agency for economic regulation of public services was created, which is now the ANSP. In 1997, a Water Law was adopted, defining the regulatory and institutional framework for water supply and sanitation.
Privatization was abandoned until a change of government in 1999. Under Mireya Moscoso's administration, Law 77 was approved to modify the Water Law, permitting privatization and strengthening IDAAN. To significantly increase IDAAN's investments in urban areas, the government decided in 2003 to use financial resources earned through the telecommunication and electricity companies' privatization.
In 2006, the government of Martín Torrijos established the Programa de Desarrollo Comunitario para Infraestructura Pública (PRODEC) or Community Development for Public Infrastructure Program (see below).
[edit] Tariffs and cost recovery
Neither the tariffs of IDAAN, nor rural tariffs are sufficiently hight to cover investment costs. The tariff structure does not provide incentives to save water. Since half of urban and almost all rural users don't dispose of water meters, those user do not receive bills based on consumption. In addition, even those who have meters pay a fixed tariff for the first 10,000 gallons each month, which is included in the basic residential tariff.
[edit] Investment and Financing
In 2005, IDAAN invested US$49m in urban areas. FIS and MINSA invested a much lower amount in rural areas. The bulk of investments was in water supply, while much less was invested in sanitation.
PRODEC aims at investing US$100m of the Panama Canal's gains into community infrastructure, including water supply and sanitation. The use of these funds is decided on a participatory basis through consultative councils at the local level.
Furthermore, the National Investment Fund invests in potable water, in particular in rural areas.
[edit] External Support
The World Bank supports the sector through a US$32m loan for the Water Supply and Sanitation in Low-Income Communities Project which is executed my the Ministry of Health.[1]
The Interamerican Development Bank (IDB) supports the sector through various projects. The US$45m Panama City and Bay of Panama Sanitation Project, approved in 2006 and executed by the Ministry of Health, supports the extension of the capital's sanitation network.[2] The sustainable development projects in Darién[3] and Bocas del Toro[4] include support of water supply and sanitation systems.
The Japanese Overseas Economic Cooperation Fund (OECF) supports sanitation in the city and the bay of Panama through a loan for constructing a sewage plant.[5]
The European Investment Bank (EIB) approved a loan to support sanitation in Panama City in 2007.
[edit] References
[edit] Sources
- IDAAN, Statistical Bulletin 2006 (in Spanish)
- World Bank: Panama Public Expenditure Review, 2006
[edit] External links
- MINSA
- ANSP
- IDAAN
- ACP
- ANAM
- Association of Regulatory Agencies for Water Supply and Sanitation -ADERASA (in Spanish)
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